How Much is too Much for a Niche Market?

I came across this news article in CNN and was amazed at how far we are taking the niche markets in our country. Without having the financial data and research obviously used to support such a decision made by Pet Airlines, I can't imagine this would be a sustainable and profitable market. However, it does cater to an extreme market, going to extents some parents don't even do for their real children (see nervous parents in bold).

What are your thoughts on servicing extreme niche markets like this one?

Here are parts of the CNN article I found worth referencing. For the complete article, visit CNN as referenced below.

More airlines embracing furry travelers
Blame America's pet obsession, but in recent years, more members of the airline industry are embracing dogs and cats on board. Midwest Airlines may be an extreme example, letting select dogs sit in the same seats as humans, but other airlines are relaxing their pet policies by letting smaller cats and dogs come into the cabin area. About a year ago, Midwest began allowing certain "celebrity" dogs that appear in canine competitions, shows or advertisements to sit in seats. "They are just passengers with four legs instead of two," said Susan Kerwin, who oversees the pet program at Midwest Airlines.

The pet travel frenzy has spurred the creation of an airline catering exclusively to pets. This month, Pet Airways, the nation's first pet-only airline, will begin flying in five major cities, including New York and Los Angeles, California. It's an alternative to shipping larger pets in the cargo area of a plane, where there have been pet injuries and even deaths.

On each Pet Airways flight, services include potty breaks and experienced animal handlers checking up on the animals every 15 minutes. Nervous parents can track their pets online.

The cost of flying your furry friend ranges from $75 to nearly $300 each leg. It's a hefty price tag, but profit-bleeding airlines are happy to offer the option.

ARTICLE REFERENCE:
http://www.cnn.com/2009/TRAVEL/07/10/pets.fly.airlines/index.html.